Queensland Pacific Metals Ltd (ASX:QPM)'s energy subsidiary QPM Energy (QPME) is nearing completion of the necessary prerequisites to finalise the acquisition of the gas and electricity assets of the Moranbah Project in Queensland.
The company is making key arrangements to become the full operator of the upstream gas production and downstream electricity generation assets.
The Moranbah Project's assets include a power purchase agreement with Townsville Power Station (TPS).
This agreement allows QPME to supply gas to TPS, generate electricity and then sell this electricity to the National Electricity Market (NEM).
What’s next?
QPME is finalising the remaining condition precedent to enable the completion of the Moranbah Project acquisition – which is imminent.
The company has been notified by the financial provisioning scheme manager that it will be compliant with its obligations under the Mineral and Energy Resources (Financial Provisioning) Act 2018.
QPM has appointed CQ Energy to provide key operational services that include the bidding and dispatch of electricity generated by TPS into the NEM.
The company has also appointed SGM Solutions to run its gas nominations and scheduling services under the various gas agreements that the Moranbah Project has with existing customers (including the TPS).